Mosaic Co. extended the idling of its single‑super‑phosphate (SSP) plants at Fospar and Araxa in Brazil, adding a second month to the 30‑day pause that began on December 16 2025. The extension, announced on January 21 2026, follows a sharp rise in sulfur prices that has made SSP production uneconomical for the company.
Sulfur prices in Brazil have surged to 17‑year highs, reaching $565 per metric ton CFR in December 2025 and nearly tripling from $178 per ton late in 2024 to over $528 per ton by year‑end. Mosaic, the country’s largest sulfur buyer, has therefore suspended purchases of sulfur in Brazil for the foreseeable future, a move that directly protects its margins.
The curtailment removes a significant portion of Mosaic’s Brazilian SSP output. While the exact production capacity of Fospar and Araxa is not disclosed, the two facilities together represent a sizable share of the company’s Brazilian operations. The pause is expected to reduce overall Brazilian output and could lower revenue from the region, but it also shields Mosaic from the steep input cost increase.
Financially, Mosaic’s operating margin remains robust at 8.6% and its net margin at 10.33%, but the company’s three‑year revenue growth has slowed to 2.3%. Management has emphasized that the curtailment is a short‑term cost‑avoidance measure and that the company will continue to monitor sulfur prices before resuming production.
Market reaction to the extension was muted. The stock gained 2.58% on the day of the announcement, following earlier declines of 5.63% and 4.46% after the initial curtailment and a weaker Q4 update. Analysts noted that the market had largely priced in the extension, and the modest gain reflected confidence in Mosaic’s cost‑control strategy.
CEO Bruce Bodine said the company remains focused on “strong earnings despite operational and market challenges.” He highlighted that Mosaic’s performance in Brazil has been resilient amid credit issues in the agricultural sector and that the company is maintaining a disciplined approach to input costs.
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